IMH Impac Mortgage Dashboard

Risks

• Our long-term success is primarily dependent on our ability to increase the profitability of our mortgage originations.
• If we are unable to satisfy our debt obligations or to meet or maintain the requisite financial covenant requirements with our lenders, our financial condition and results of operations may be materially and adversely effected.
• Further spread of COVID-19 or any mutations thereof could negatively impact the availability of key personnel necessary to conduct our business.
• The continued impact of the pandemic could negatively impact the availability of key third party service providers necessary to conduct our business and the ability of counterparties to meet contractual obligations to us.
• Our use of financial leverage exposes us to increased risks, including breaches and additional potential breaches of the financial covenants under our borrowing facilities, which could result in our being required to immediately repay all outstanding amounts borrowed under these facilities and these facilities being unavailable to use for future financing needs, as well as triggering cross-defaults under other debt agreements.
• The use of alternative exit strategies subjects us to risk associated with the potential limitation or elimination of delivery options to counterparties which has had and could continue to have a material adverse effect on our financial condition, results of operations and cash flows.
• The success and growth of our business will depend upon our ability to adapt to and implement technological changes.
• Our performance may be adversely affected by the performance of parties who service or sub-service our mortgage loans.
• Our NonQM product offerings may expose us to a higher risk of delinquencies, regulatory risks, foreclosures, counterparty risk and losses adversely affecting our earnings and financial condition.
• Cybersecurity risks, data privacy breaches, cyber incidents and technology failures may adversely affect our business by causing a disruption to our operations, a compromise or corruption of our confidential information, and/or damage to our business relationships, all of which could negatively impact our financial results.
• Inability to successfully complete securitizations, or delayed mortgage loan sales or securitization closings, could result in a liquidity shortage which would adversely affect our operating results.
• We may not be able to access financing sources on favorable terms, or at all, which could adversely affect our ability to implement and operate our business as planned.
• Our hedging strategies implemented by our mortgage lending operations may not be successful in mitigating our risks associated with the market movement of interest rates.
• A decline in the unpaid principal balance of the servicing portfolio and the related estimated fair value of the MSRs could adversely affect our net earnings, financial condition, future servicing fees and our ability to borrow on our MSR financing facilities.
• Our ability to utilize our net operating losses and certain other tax attributes may be limited.
• Representations and warranties made by us in our loan sales, servicing rights sales and securitizations may subject us to liability.
• The geographic concentration of our mortgages increases our exposure to risks in those areas.
• Our vendor relationships subject us to a variety of risks.
• If we are forced to liquidate, we may have few unpledged assets for distribution to unsecured creditors or equity holders.
• If we fail to maintain effective systems of internal control over financial reporting and disclosure controls and procedures, we may not be able to report our financial results accurately or prevent fraud, which could cause current and potential stockholders to lose confidence in our financial reporting, adversely affect the trading price of our securities or harm our operating results.
• Our earnings may decrease, or losses increase, because of changes in prevailing interest rates.
• The pandemic has impaired and may continue to impair the ability of borrowers to repay outstanding loans or other obligations, resulting in increases in forbearances and/or delinquencies, which could negatively impact our business.
• A decline in real estate values may have a material adverse effect on our financial condition and results of operation.
• Our business is affected by changes in the state of the general economy and the financial markets, and a slowdown or downturn in the general economy or the financial markets could adversely affect our results of operations.
• Litigation in the mortgage industry related to securitizations against issuers, sellers, servicers, originators, underwriters and others may adversely affect our business operations.
• Loss or suspension of our approvals, or limitations placed on our delivery volume, or the potential limitation or wind-down of, the role Fannie Mae, Freddie Mac and Ginnie Mae play in the residential mortgage-backed security (MBS) market have had, and could continue to have, an adverse effect on our business, operations and financial condition.
• Regulatory laws affecting our operations, or interpretations of them, may affect our mortgage lending operations.
• The CFPB continues to be active in its monitoring of the loan origination and servicing sectors, and its rules increase our regulatory compliance burden and associated costs.
• Our share price has been and may continue to be volatile and the trading of our shares may be limited.
• Issuances of additional shares of our common stock may adversely affect its market price and significantly dilute stockholders.
• We do not expect to pay dividends in the foreseeable future and we may be restricted in paying dividends on our common stock.
• Our principal stockholders beneficially own a large portion of our stock, and accordingly, may have control over stockholder matters and sales may adversely affect the market price of our common stock.
• Provisions in our charter documents and Maryland law, as well as our NOL Rights Plan, impose limitations that may delay or prevent our acquisition by a third party.